UA&P economist revises 2025 PH growth forecast to 5.1%

The Philippine economy is projected to grow by 5.1% this year, falling short of the government's target of 5.5% to 6.5%, according to UA&P economist Victor Abola.

This revised forecast represents a downgrade from UA&P's previous projection of 5.5% GDP growth.

The slowdown in the third quarter, which registered a four-year low of four percent growth, was attributed to a contraction in public construction due to a flood control scandal, negatively impacting consumer and investor sentiment.

For the first nine months of the year, the average economic growth was recorded at 5%.

Abola anticipates an improvement in the fourth quarter's economic performance compared to the third quarter, supported by factors such as low inflation and stable employment.

He forecasts an average inflation rate of 1.7% for the entire year, and projects 2.2% inflation for 2026.

For 2026, Abola expects 5.3% GDP growth if the government addresses corruption issues and due to low base effects.